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HomeMy WebLinkAbout1994/09/12 - ADMIN - Minutes - Economic Development Authority - RegularMICROFILM=r o I M IN U T E S E C O N O M IC D E VE L O P M E N T A U T H O RI TY ST . L O U IS P A RK , M IN N E SO T A Septem ber 12 , 1994 1. Call to order President Hanks called the meeting to order at 6:30 p.m. 2. Roll call l ) J The fo llowing Commissioners were present at roll call: George Haun, Allen Friedman, Ron Latz, Robert Young, Gail Dorfman and Lyle Hanks. Al so present were the Executive Director (Mr . Meyer); City Attorney (Mr . Steilen); Director of Comm unity Development (Mr . Hagen). 3. Approval of minutes It was moved by Commissioner Dorfman, seconded by Commi ssioner Latz, to approve the minutes of the July 5, 1994 EDA meeting. The motion passed 6-0. It was moved by Commi ssioner Dorfman, seconded by Commi ssioner Latz, to approve the mi nutes of the Augu st 1, 1994 meeting. The motion passed 4-0-2 (Commi ssioners Friedman and Latz abstained). 4 . Approval of agenda It was moved by Commissioner Latz, seconded by Commissioner Dorfin an, to approve the agenda fo r September 12, 1994. The motion passed 6-0. 5. Reports Authority convened in executive session to discuss a matter of litigation a. Victoria Village: Master project schedule Commi ssioner Young asked is this was a workable timetable, would it be taxi ng for staff to meet the proposed deadlines. Mr . M eyer said it was not an accelerated schedule; it was unusual in the respect that the Authority normally does not create a tax increment district of this type. 1 It w as moved by C om missioner Latz, seconded by Comm issioner H aun, to appro ve the master project schedule. T he m otion passed 5-1 (Commissioner Y oung opposed). 5b. Parkshore Place: Assisted living pro ject M ike G ould w as present to discuss the project w ith the Authority. The pro posal w as a request for $800,000 w ith a payback strictly thr ough the taxes generated by the project. H e w as not suggesting there be any tax-exempt status, the project w ould pay fu ll taxes. Com missioner Latz referenced the 501C 3 and that M r. G ould said it w ould not be tax exempt organi zation. It w as hi s understand that the In tern al Revenue Code defines 501C3 as tax exempt. W as he suggesting that there w ould be an agreement to pay the taxes even though it had no legal obligation to do so. Mr . G ould said that w as tru e and previously had been done w ith Presbyt erian H om es in Bloom ingt on and Eagle Crest in Ar den H ills. President H anks asked, if they are paying taxes, how do they fit into the TIF concept. Mr . Steilen said the w ay it w orks the City w ould get the tax increments so long as the tax increment district w as alive. H e believed this one expires in 2001 fo r purposes of the City getting tax increm ent from this project. Aft er 2001 it w ould be split the normal w ay as any other tax revenue. D iscussion fo llow ed about repayment of the $800,000. C ommi ssion Latz asked w hat happens if the TIF district expires and the $800,000 has not been fu lly repaid. Mr . G ould suggested they w ould be obligated to pay back mi ni m ally the principal of $800,000 by the tim e the district expires. It w as moved by C ommi ssioner H aun, seconded by Commi ssioner Friedm an, that the Authority's attorn ey review the pro posal and determi ne w hat might occur past 2001 as far as the payoff is concerned and report back to the Authority in October. Commi ssion Y oung asked if the offi ce building on the com er w as to be dem olished. Mr. G ould said as fa r as the developm ent of the assisted living fa cility is concerned it w ill not be demolished. T he parking lot w ill be upgra ded as w ill the landscaping. Commi ssioner Y oung asked w here the $800,000 com es from . From the report he read, all the tax increm ent districts are in the red. Mr . M eyer said none are in the red as far as reserv es are concern ed. On a cash flow basis they may be in the red. T he motion passed 6-0. 2 MICROFILMED 6. 7. New business - None Unfinished business - None 8. Other business - None 9. Communications and bills Y ) J a. Monthly financial statement It was moved by Commissioner Haun, seconded by Commissioner Latz, to receive for filing. The motion passed 6-0. b. Vendor claims It was moved by Commissioner Dorfman, seconded by Commissioner Haun, to approve and authorize payment. In answer to a question from Commissioner Friedman, Mr. Meyer said Horizons Inc. was an aerial surveyor used to photograph Excelsior Blvd. 10. Adjournment It was moved by Commissioner Latz, seconded by Commissioner Young, to adjourn the meeting at 7:28 p.m. dent Hanks 3